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tv   Nightly Business Report  PBS  April 21, 2015 1:00am-1:31am PDT

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this is "nightly business report. >> the bulls are back, stocks it kick off this big earnings week with even bigger gain. and attention turns tonight to bluest of blue chips, ibm. and 40% of the dow jones average report results. an guxlf will never good evening everybody. >> glad to be with you. bounce back. that's what stocks did following friday's steep decline. the dow jones average gains more
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than 200 points putting it back within reach of a new record. investors were encouraged out of stimulus out of china over the weekend and upbeat earning results at the close blue chip index up 18,034. nasdaq gained 63 points best day since february. s&p up by 19. now attention turns to bluest of blue chips, ibm, its results could set up tomorrow. beat estimates by 11 cents but revenue of almost $20 billion was below expectations and way off from the st shares were volatiles in after hif ho trades. we have a key take away. >> the big number for ibm, revenue of $19.6 billion.
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it did disappoint wall street's expectation, ibm facing rising dollar and the h it's strategic imfehrperatives includ c and mobile were up 20% and stronger when adjusting for currency that's the hope to scale higher value services qui from san francisco. ibm though is just the start. this week we'll get results for more than a quarter of s&p 500 and what the reports could tell us about the economy, the health of it and the american business. big names from facebook and amazon to starbucks and mcdonald's will make this a tech and consumer-heavy earnings week. they will tell us the first quarters bad weather and
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strengthening u.s. dollar are expected to drag down numbers. moving forward, bad weather subsided. not easy to gauge for industrial hard ware international flight foods and snacks and grocery items. the proofs should be in the earnings report. >> it is hard to measure what exactly is the u.s. dollar effect on these companies. so this will give us a chance to see what happened. >> the dr has strengthed in part thanks to change in central bank policies around the world which have kept stocks range-bound this year. >> when you have stocks fairly highly prices earnings momentum slowed and central bank shifted to less accommiveaccommodative, dare i say not at all.
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you have favorable for stock prices to less favorable for stock prices. >> spending was barely up during despite decent hiring and inc one bright spot in the stock market tech stocks. nasdaq is up three or four than 4% for 2015 well ahead of the dow and s&p 500. tomorrow we hear from yum! . on wednesday it's facebook and coca-cola and mcdonald's. thursday tech all-star's google microsoft and amazon report. along with p & g, pepsi, hershey's and starbucks. >> we now talk about one sector that investors need to watch.
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on oppenheime rrks and expectations we are very low. how are doing to meet them. >> so far so good. the bar was relatively low coming into earnings sea consensus was earnings would be down 5% in q1. about 75% of companies have been beating the eps numbers but much fewer on top line revenue side. only about 5 showing that companies are doing a pretty good job of managing co in a pretty difficult revenue environment. >> is it going to be a positive earnings season or slightly in the negative? >> i think the numbers will be slightly down no matter what largely because energy will be
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such a big drag down almost 60% quarter over quarter, materials will be firmly negative as well. even the positive sectors like health care finals and teches which are going to show good earnings growth won't pe enough to offset the big losses we've seen on the commodity side. the number is likely going to be negative still >> let me ask you, the winners and losers in you mentioned health car they are certainly among the winners. who are some of the losers? >> health care will definitely be number one in terms of earnings, up double digi. energy will be worse because of the price of crude oil it's down so much in the quarter. even within energy expectations is probably too low. they will be better ex. the other losers will be utilities and tele com which are
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likely to post negative year over year growth. >> on the flip side if you look at your expectations in terms of the winners, we mentioned health care you have a double digit number but financials and consumer discretionary. >> yes. certainly the two health care and consumer discretionary have been good sectors year to date relative out performers so the market is flocking to eps growth and sniffing t consumer will be disperse with winners and losers. restaurants will be one pocket of strength . some of those names will be reporting this week. >> so finally the one sector to keep an eye on is it health care. >> yeah i would say health care. it's within the top line revenue and eps growth and will continue toa area for this market. >> what ab
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can the overall market continue to perform and outpace? >> yeah i thinu really have to ask yourself is then earnings in q 1 going to be a pattern, or a temporary blip. we think it is a temporary sector as we get into q 2 q 3. we think the stock market will move higher as we get past this blip we're s >> thanks for joining us andrew. >> just earnings put stimulus in a good mood but also out of china a move freed up money that the banks c earlier we spoke with young and
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asked her how aggressive the move was by the central bank. >> definitely aggressive move. it's a hundred basis points. usually we see cuts as a way to prop up the economy but the moves are 50 b points the biggest move we've seen since the global financial crisis and it was a scary signal from some investors. >> some investors may be worried that things are worse off in i china than we thought. we know they've been trying to negotiate a slow down in the economy, there's also worries about credit. is there something to worry about. >> that's what a lot of people are wondering. what's clear is the policy makers are more nervous than they were months ago. we saw this big move coming off bad economic d q 1 gdp came in at 7%. the headline number was one
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thing but it was the march data this scared people because we saw instead of pick ups, we saw tapering off of the moore data. so that's why a lot of people are wondering where is this all going to go. >> what else, if this zn the work or if they don't get the stimulus they wantus what else can they do. >> they still could cut interest rates, cut the reserve requirement ratio, again -- at the same time one of the disconcerting issues people had about this move was that what we're seeing is that the government is trying to get money to the right places we've seen for a while that money is going to the wrong places to companies that have a lot of debt political connections, but really are not productive. >> and how much time do you think we need to see whether or not this particular move is successful. >> it will take several months
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at least, they take time to trickle through but again a lot of people are hoping we will see money moving to the right place. >> all rigo nice to have you in studio. we reefly apprec we really appreciate it. thank you. in greece they can transfer all balances to the central bank as debt to the international monetary fund is due. greece could run out of cash by mid-may. oil prices were higher today after a drop in u.s. crude stock eased over stockto concerns that outweighed concerns from sawed eye arabia. it was five years ago five years ago oil began gushing from bp into the gulf of mexico and the impact on businesses is still
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being felt today. >> this was the scene five years thousands of gallons of oil gushing into the gulf of mexico following the explosion on bp's deep water horizon's platform resulting in the biggest environmenl disaster in u.s. history. >> for deep water operator it will never been the same. >> that's the take. not for big oil. not for sea food industry. not for the environment. that doesn't mean business is not getting done it just means it is changing. as a matter of fact the pace of off-shore drilling in the gulf is rising but still not at pre-spill levels. one of the biggest challenges operating in an environment where it is 20% to 30% less efficient to drill, the reasons, the need for increased blow out,
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and contingencys for this not happening in the future. everyone seen what happened to bp and nobody wants to have to face that. >> also hoping to avoid repeat significance situations oyster farmers. >> over on this side we have six people opening oyster and on this side we would have seven and all combined you're looking at 18 oyster shuckers. >> often ferries distributes oysters to this third-generation family business in new orleans and says today the availability has dwindled leaving him to lay off his entire staff. and on the water, mitch jr. says
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frod ukss is down but prices are up. >> i'm down a third but the price of oysters are three to four times higher than it was so it is offsetting the production is down but the prices are u so we're still hanging in there. >> as the oyster industry forths forward so does that of big oil. plan for off-shore drilling projects are not going to be aback on top abandoned. 15 new drills in the next five . and despite production in the gulf it is still profitable. >> 500 million gal yooplons of spilled in the gulf of mexico and eleven were killed and the goal is to mak it never happened again.
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so large oil companies are working on safety prevention, and restor in new yorko. still ahead what happens when those from comcast and cable meet with regula black rock agreed to pay 12 million dollars to settle claims. it breached its duty but not disclosing that a top manager was also overseeing a oil and
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na in a settlement with scc lightning agreed agreed to hire a compliance consultant. comcast set to meet with regulators and government officials are looking close at the proposed mega merger would mean to competition in that industry and to consum we have more now on what's at stake as the scrutiny . >> when comcast and time warner cable sit for the sfirsfirst time on the table possible con deal is getting more difficult over the las. >> they fear the deal won't go through looking at the concerns about the combined company controlling 30% of the paid tv market and50% of broadband market.
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possible concessions include difesting 30 million customers. they already agreed to deals to sell nearly 4 million customers and comcast could agree to extend commissions to nbc commercial acquisitions beyond their expiration in 2018. another hot topic, net neutral ality. regulators ifrequire all internet service providers to treat all web traffic equally even if those deals are shot once deals are laid out see if comcast will comply. if they don't like this they won't put them selves in >> could accept recommendations as soon as this week. >> by the way comcast is the
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parent company of cnbc which produces this program. an update to a story we reported friday. espn is expressing concern about verizon's new tv packages allowing customers to pay for cable without buying hundreds of channels. the popular sports network says verizon doesn't have the right to offer espn outside of a package. in the new package espn would be part of an optional sports bund strongest results in years were posted today after higher revenue and traded bonds and equities and slew of corporate mergers. shares closed to $36.96.
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has bro beat estimates by a wide mar after it saw strong performance in transformer toys and preschool units. it is up to $76.16 making it today's best performer in s &&p 500. halliburton says it is planning to lay off more employees as it expects the oil sector to remain challenged. that stock 2% higher to $47.85. sentra edged up in recent quarter helped by lower expenses and growth in non-interest income rose to $41.77. royal caribbean cut its 2015
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outlook. the cruise ship company says it was hit by the strong u.s. dollar and higher fuel p tumbled to $72.71 worst performing stock today. -- web sent is privately held by vista equity partners. shares at $107.49. general aelectrics is in talks to sharing it's entire lengding and lease portfolio to the bank. ge is planning to exit the bulk of its capital business and focus more on industrial manufacturing wells fargo up a fraction to
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$54.56. long lines, big headache for retailers but in target's case with the launch of its collection this weekend, it was we have more. >> loany for lily. >> going in. >> arounded the country thousands of shoppers lined up at target stores and logged online to shop the new target collabor the merchandise sold out in minutes with heavy traffic causing issues on the retailer black friday comparable traffic limited the numb of shoppers on the site and later took it down for 20 minutes to get the full collaboration loaded. >> as with the case with all collaborations, the inventor is limited and when it is gone it's gone. ahead of the launch kathy told me she ordered more inventory
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with thi and inte >> it was exciting for our guests. necessity we think it will sell really well and we want everything in our stor it's not that any one collection will move the needle. >> target acknowledges the social media buzz was strongest yet. while every shopper was not happy with their experience analysts say it is the demand and social conversation that could bring back the target tar-jaj. from edge water, new jersey. >> w. well those lily pull pulitzer for target items are already up on on ebay some asking a lot more for instance $1,000 for a $60 beach chair. >> wow.
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coming up a david and goliath story -- in the real estate industr here's what to watch for tomorrow. we will have earnings for dupon, united technologies verizon and travellers and we will get the tonner index and ihs energy sarah week will be in full swing, the annual must-attend conference for energy leaders. big owner of warehouses and retail distribution centers is buying ktr capital which owns more than 300 industry
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properties in the u.s. price tag almost $6 million making it one of the largest this year. from commercial real estate to residential and a classic tail of an under dog taking on a giant. in this case a woman who took a big stand against developers and years after her death the story final close to ending. >> a real life image is that could be a carton. the tale is similar to the disney movie "up". an elderly home owner standing up for what was for what used to. and a community rally around. once upon a time in 1996 edith live in a house she wouldn't
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sell for even a million dollars so the structure went up around >> it is an unusual symbol for someone who says i will not topple over for a big corporation. >> but in 2008 she passed away and left the home to barry martin. >> i first met her kneeling over in her garden. >> a constructio on the mall. as he tells it she wasn't taking a stand against corporate america at all. >> she wouldn't sell her house because she had nowhere to go and was comfortable he he sold the home to pay for his kid's college. but latest owner has defaulted on the home and now the tiny home is waiting to hear its fate. >> i wouldn't be surprised if it
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sold for over a million. >> the only condition of the sale is that there be a memorial to her even if just a plagque so the story would live on. >> it turned into something bigger than anyone would have thought. >> s sits. in the end this cottage could stay but if only it could fly, up and awa >> and that's nightly bu. >> we'll see you tomorro
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